Politics

Short Circuit for Wales

Published

9 years ago

July 7, 2017

THE WELSH GOVERNMENT has been accused of misleading the public, ambushing investors, and using the Circuit of Wales project as a political football intended to shore up its vote in the South Wales Valleys after refusing to back the project last week.

NO TO GUARANTEE

The Welsh Government had been asked to provide a loan guarantee of £210m to private investor, the insurance giant Aviva. Had the Circuit gone bust, the Welsh Government would have been left liable for the loan balance but Aviva would have retained ownership of the Circuit.

Last week, Economy Secretary Ken Skates announced that the Welsh Government had decided against backing the project by providing a guarantee to key investor Aviva, claiming that late in the day the Welsh Government had received advice from HM Revenue and the Office of National Statistics that financing the deal would amount to state aid and affect Wales’ capital grant from the Westminster Government.

Mr Skates claimed that the presence of the Circuit of Wales on the books would have meant education and health services would have had their budgets squeezed.

However, Mr Skates’ version of events has been met with withering scorn from opposition parties who say that the Welsh Government’s version of events is disingenuous nonsense and that the Welsh Government has twice delayed pulling the plug on the project for Labour’s own electoral benefit .

INDEPENDENT INQUIRY CALL

Both the Conservative Party and Plaid Cymru have called for an independent inquiry into the Welsh Government’s conduct of the Circuit of Wales deal.

Andrew RT Davies, the Conservative leader in the Assembly said: “The Circuit of Wales has been a Welsh Labour car crash of epic proportions.

“After so many years of uncertainty and false hope, it’s clear that Welsh Government have plenty of questions to answer.

“Whilst I have had longstanding concerns that the Heads of the Valleys Development Company may not be right vehicle for this project, it is hugely disappointing to see it crumbling away in such dramatic and overnight fashion.”

Plaid Cymru Shadow Cabinet Secretary Adam Price claimed that evidence has come to light that the First Minister may have misled the public.

Adam Price said there was ‘compelling evidence the Welsh Government has been guilty of serial mendacity ‘.

“Sadly this project has been characterised by a series of inaccurate and misleading statements made by the Government, ostensibly to justify its own position in the face of potential criticism ,” he added.

“An email written by an Aviva senior director – dated 14th July last year – pointed to the false assertion by the Welsh Government ‘that we requested a 100% underwrite a few days before the rejection (of the first proposal in April 2016), when in fact this deal had been worked up with the Welsh Government (through civil servants) for many months and nothing in our funding structure changed in the run up to the announcement’.”

Mr Price continued: “I have an email from Welsh Government presenting a proposal based on a Welsh public sector guarantee of the debt dated January 26th 2016, confirming Aviva’s assertion. And yet speaking in Ebbw Vale on April 11th last year, as reported by the Western Mail, Carwyn Jones repeated the falsehood when speaking about the rejection of the proposal: ‘It was in the last few days beforehand. We weren’t to know the guarantee would be inflated’.

“These are not isolated instances. They are part of a pattern of duplicity that have characterised the Welsh Government’s approach to this project throughout, constantly shifting goalposts and covering their tracks.”

Mr Price called for an independent inquiry to investigate the matter: “Since the First Minister himself can now be shown also to have misled the public on the Circuit of Wales – all the more pointedly as it was in Blaenau Gwent and in the middle of a keenly fought election campaign – it’s no longer appropriate that he makes this decision as he will now need to be a subject of that investigation, not its judge and jury.

“As things currently stand no-one – business, media, Parliament or public – can be confident our Government is being straight with us. Only a full independent inquiry can begin to rebuild public trust. “

HAMILTON SLAMS GOVERNMENT INSULT

Neil Hamilton AM, UKIP Group Leader in the National Assembly for Wales stated in the Senedd chamber: “Are we really expected to believe, that the government accounting conventions about whether something should be classified as public expenditure or private by the ONS and the Treasury have come as a blinding revelation yesterday, and the cabinet was totally unaware of these conventions hitherto?

“It is an insult to the people of Blaenau Gwent that such a shoddy excuse has been used and a disgrace that so much public money and time was wasted on this decision.

“The Welsh Government now plans to build a £100m automotive business park in Ebbw Vale. What we have now is a proposal from the government to spend £100 m over ten years. Shedloads of money to build a series of empty sheds,” continued Mr Hamilton

“Interestingly the Welsh Government announced this decision after the election; a decision beforehand would clearly have damaged Labour in the polls. What a cynical political decision, a terrible betrayal of the people of Blaenau Gwent and a shoddy excuse for what amounts to the replacement of the Circuit of Wales with a Scalextric set.”

Appearing before the Public Accounts Committee the day before the Welsh Government pulled the plug, a senior Welsh Government civil servant, James Price, told Committee members that he regarded the £9.3m as a fair price to pay for the due diligence that it had enabled the Welsh Government to undertake and suggested that the Auditor was wrong to decide that business risk assessments carried out before providing the money were deficient.

One thing that emerged from that Committee meeting was the broad agreement that due diligence had to take place before the Welsh Government exposed itself to further risk. It was surprising, therefore, that the following day in the Assembly one of those members who had been singing the praises of due diligence taking place committed a complete about face.

Deriding the Welsh Government’s involvement as being an exemplar of ‘the dead hand of government’, UKIP’s leader in the Assembly Neil Hamilton appeared to have forgotten his words of little over twenty four hours earlier: ‘Personally, I think it was a very reasonable punt you took (with the grant and loan). Now we’re talking about much, much larger sums of money, it’s right that a considerably greater degree of examination be undertaken’.

COMPANY DENIES GOVERNMENT CLAIMS

A spokesperson for the Heads of the Valleys Development Corporation (HVDC), the company behind the Circuit of Wales, said: “Along with my team and commercial partners, I am hugely disappointed and saddened that the Welsh Government has failed to support The Circuit of Wales, what would be a game changing development for Wales and in particular the people of Blaenau Gwent.

“We strongly disagree with the decision and the rationale behind it.

“We have always believed passionately, and continue to do so, in this project’s ability to transform and provide opportunities and hope to one of the poorest parts of the UK, not just Wales. The project is totally defined, finance is in place, and construction and hiring could start immediately.

“My team and I will now analyse the Welsh Government’s reasons not to support the development and are actively seeking additional clarification from them. We will then very shortly issue a detailed response before deciding on our next course of action.”

That detailed response, when it arrived, savaged the Welsh Government’s reasoning and claimed that the reasons given to the Senedd for refusing to back the deal were either wrong, specious, or had not been raised with the developer or its investors. In addition, the statement revealed that the Economy Secretary had not met with representatives of the company for over twelve months before making his decision.

A spokesperson for HVDC said: “ This is a real loss for the people of Ebbw Vale, the immediate community and a missed opportunity for Wales as a whole. This is a project that has been totally defined; it is fully financed (with finance in place) with construction and hiring ready to start immediately.

“At a time when the Welsh Government is trying to demonstrate that Wales is ‘ppen for business’, the rejection of this significant infrastructure project will do little to breed confidence within the private sector for future investment in the country.”

Most tellingly, perhaps, HVDC made a concerted attack on the Cabinet Secretary’s assertion there was a very significant risk that the full £373million debt of the entire Circuit of Wales project would be classified against Welsh Government capital spending.

The statement from the Company expressed amazement at the lack of notice given to it that any problem had arisen: ‘The company was never informed or made aware of this ONS and HM Treasury advice during the due diligence process. We were promised by Welsh Government officials that we would be consulted if any significant issues arose during due diligence and given an opportunity to respond.

‘We were not notified that this was a serious roadblock prior to Tuesday’s meeting and never given a chance to respond.

‘The Welsh Government has known about the latest structure of this project since well before February 2017 and could easily have obtained clearer guidance from Treasury and ONS prior to Tuesday’s meeting and informed us’.

The spokesperson continued: “We believe it is important for the people of Blaenau Gwent to have the details of these discussions with ONS and HM Treasury disclosed to the public. What were these discussions, who were they with and when were they undertaken?

“ We wholeheartedly disagree that the support for The Circuit of Wales would be on balance sheet and would require the Welsh government to limit its budget and compromise the building of schools and hospitals .”

The company also claimed that the £100m technology park – funded by public money – announced by Ken Skates as a sop to Blaenau Gwent was scheduled to cost £150m of wholly private money and be delivered in two years: not the ten announced by the Cabinet Secretary in the Senedd.

SCHEME UNDER SCRUTINY

However, the scheme has been the subject of scepticism for some time.

A BBC investigation for soon to be scrapped current affairs programme Week In Week Out, cast doubts on whether or not the company could achieve anything like the promises it had made either in terms of regeneration of Blaenau Gwent or in relation to delivering on its promises regarding the proposed facilities within the time and budget specified. Moreover, the same documentary revealed that £35,000 from HVDC – a company partly funded by the Welsh Government – had been used on landscape gardening on the home of the person fronting the scheme, Michael Carrick.

An investigation by the Auditor-General for Wales criticised the Welsh Government both for a loan guarantee a £7.3m provided to HVDC and a £2m grant provided as seed money. The Auditor discovered that part of the money had been used to acquire a small motorcycle manufacturing business in England and ruled that there had been insufficient regard as to whether the uses to which public money were being put were delivering value for money for the public.

Initial claims that 6,000 jobs would be created and claims of businesses flocking to set up working partnerships on the Circuit of Wales site had also come under scrutiny.

A reassessment of the project carried out by the University of South Wales as part of the due diligence process suggested that 2,000 jobs fewer than claimed would be created. In addition, jobs during the construction phase of the project would be temporary, with the Circuit ultimately employing around 150 full time staff, while the remainder of jobs would be created in spin-off enterprises over a longer period of time.

As this article was being prepared for publication, Michael Carrick, told BBC News: “We haven’t given up on it and I’m hoping government hasn’t.

“The project is too important to walk away. We’ve got the support of our investors, we’ve got the support of our development partners and we want to make it work for government and for the valleys.”

Whether Mr Carrick will be able to overcome the deep reservations of the Welsh Government and proceed with the scheme with their backing is open to question.

Whether the HVDC will be able to develop the Circuit of Wales on the scale planned – or at all – without that backing, is highly unlikely.

Politics

Pembrokeshire National Trust car park schemes approved

Published

1 hour ago

April 5, 2026

Bruce Sinclair - Local Democracy Reporter

PLANS for three solar-powered parking meters at National Trust south Pembrokeshire beauty spots have been given the go-ahead by the national park.

In an application to Pembrokeshire Coast National Park, the National Trust, through agent Mott Macdonald Ltd, sought permission for replacement solar-powered parking meters, along with associated infrastructure including an Automatic Number Plate Recognition (ANPR) camera, at Broad Haven, Stackpole Quay, and Bosherston Lily Ponds carparks.

An officer recommending approval said it was intended to install a Solar Strada S5 Terminal parking meter at Broad Haven Carpark, an Automatic Number Plate Recognition (ANPR) camera and Solar Strada S5 Terminal at Stackpole Quay carpark, and a Solar Strada S5 Terminal parking meter at Bosherston Lily Ponds.

It added: “As there was a previous level of visual intrusion caused by the existing infrastructure, the proposed parking fee terminals are considered unlikely to exacerbate the existing level of visual impact caused by the existing pay and display terminals.

“The proposed installation of the solar parking fee terminals at Broadhaven, Stackpole Quay and Bosherston Lily Pond carpark and the ANPR camera at Stackpole Quay carpark are considered to be well designed in terms of scale, siting, visual amenity and biodiversity.”

The application for the three units was conditionally approved by park planners.

News

Eluned Morgan targets Haverfordwest as Welsh Labour fights to hold its ground

Published

9 hours ago

April 5, 2026

Tom Sinclair

A HAVERFORDWEST teaching assistant became the quiet centrepiece of Welsh Labour’s manifesto launch — and, in doing so, revealed a party focused less on momentum than on damage limitation in towns like ours.

Eluned Morgan’s manifesto launch speech was meant to speak to the whole of Wales. But tucked inside it was a telling local calculation.

When the Welsh Labour leader told delegates about a teaching assistant in Haverfordwest who had “never voted in her life” but would now back Labour because of a pay rise, it was no throwaway line.

In political terms, it was no throwaway line. Morgan was invoking a voter from the very constituency battleground where Labour needs reassurance to cut through.

After years in power, Welsh Labour knows it cannot simply rely on habit, loyalty or anti-Tory feeling to carry it over the line. It needs to reconnect with lower-paid working people in towns like Haverfordwest — voters who may still support parts of Labour’s record, but are increasingly doubtful that life in Wales is getting better.

That is why Morgan’s speech mattered.

Far from sounding like a leader marching confidently towards victory, she sounded like someone trying to hold together a delicate coalition of public sector workers, traditional Labour supporters and anxious voters tempted by change, but wary of the alternatives.

The tone was revealing from the outset.

This was not a speech built on triumph. It was built on caution.

Morgan spoke of pressure on families, pressure on public services and pressure on her own party. She acknowledged that many voters feel something “isn’t quite right” and said people want “a little more certainty” and “a little less dread”.

That is not the language of a party taking victory for granted. It is the language of a party that knows it must steady nervous voters before polling day.

In that sense, the Haverfordwest example was politically shrewd.

Teaching assistants and school support staff are not just another part of the workforce. They are exactly the sort of voters Labour needs to keep onside — public-facing, often modestly paid, rooted in their communities and living the everyday pressures politicians talk about so freely.

By highlighting a Haverfordwest worker who had never voted before, Morgan was trying to tell a wider story: that Welsh Labour can still reach the ordinary voter who feels overlooked, underpaid and unconvinced by politics in general.

But there was another message buried in the anecdote.

Labour is plainly worried about disengagement.

A voter who has “never voted in her life” is useful in a speech not just because she is newly supportive, but because she represents a wider problem for all parties — the sense that many people have drifted away from politics altogether.

Morgan knows frustration with government in Cardiff Bay is real, especially after long-running complaints over NHS access, stretched public services, transport and the cost of living. Her answer was not to offer excitement, but reassurance.

That came through again and again.

She promised there would be no rise in income tax. She attacked “easy promises” and “slogans”. She said she would not “gamble” with people’s lives. She framed the election not as a call for upheaval, but as a choice between seriousness and protest.

In plain terms, Labour is trying to turn this election into a referendum on risk.

That is often what governing parties do when they sense frustration in the electorate, but hope voters remain more cautious about the opposition.

It also helps explain why west Wales featured so prominently in the speech.

Morgan promised a new hospital for west Wales as part of a wider NHS building programme. She also pledged that patients would be able to access a primary healthcare professional within 48 hours if they had a problem that could not wait.

Those lines will have landed strongly in Pembrokeshire, where concern over health services has become one of the most potent and emotional issues in local politics.

But they also expose Labour’s weakness.

After decades as the dominant force in Welsh politics, Labour is still having to promise basic improvements in areas where public frustration is already deepest. Voters may welcome those pledges, but many will also ask why, after all this time, they are still being asked to wait.

That is the central tension in Morgan’s speech.

She wants to campaign as both the agent of improvement and the guardian of stability. She is asking people to believe Labour can fix problems that have grown on Labour’s watch, while also arguing that nobody else can be trusted to take over.

It is not an impossible argument. But it is a difficult one.

For readers in Pembrokeshire, perhaps the most revealing thing about the speech is not just what it promised, but what it exposed.

It exposed a Welsh Labour leadership that knows west Wales matters.

It exposed a party that sees lower-paid workers and public service staff as central to its survival.

And it exposed a leader who understands that this election is not being fought on favourable ground.

The repeated slogan was “fairness you can feel”.

But the speech itself suggested something more hard-headed than hopeful.

Welsh Labour is no longer campaigning like a movement expecting gratitude. It is campaigning like a government asking voters, however frustrated they may be, not to take a chance on anything else.

News

Trail hunting consultation opens as debate grows in Pembrokeshire

Published

10 hours ago

April 5, 2026

Tom Sinclair

Animal welfare groups back proposed ban, while supporters of country sports warn against further pressure on rural traditions

THE UK GOVERNMENT has opened a public consultation on plans to ban trail hunting in England and Wales, setting up a fresh debate in rural areas including Pembrokeshire, where hunting remains part of the social calendar for some communities.

Ministers say the move would deliver a Labour manifesto pledge and help close what campaigners describe as loopholes in the law. The consultation is seeking views from the public, landowners, hunt organisers, local authorities, conservation bodies, businesses and animal welfare groups on how a ban should work in practice and whether wider changes to hunting law may also be needed.

Trail hunting was introduced after the Hunting Act 2004, with organisers saying it involves hounds following an artificially laid scent rather than a live animal. Opponents argue it has too often been used as a cover for illegal hunting, while supporters say it is a lawful countryside activity which should not be swept away by politics.

The Hunt Saboteurs Association and the League Against Cruel Sports have both welcomed the consultation, saying it gives the public a chance to support stronger protections for wildlife and prevent further loopholes from being exploited.

But countryside groups have hit back, arguing that the proposals could have serious consequences for rural communities, jobs and long-standing local traditions. The Countryside Alliance has urged supporters to respond, saying those who understand country life must not allow others to shape the outcome unchallenged.

The issue is likely to attract strong views in Pembrokeshire, where country sports still have a loyal following. The Cresselly Hunt, one of the best-known local hunts, continues to hold regular trail hunts and social events, underlining how closely the subject is tied to local rural identity as well as national legislation.

That means any attempt to tighten the law is unlikely to be seen locally as a simple animal welfare measure. For many in west Wales, it will also be viewed through the lens of heritage, land management and concern that rural voices are being overlooked by decision-makers.

The consultation does not itself change the law, but it is the clearest sign yet that legislation is being prepared. With ministers now formally gathering evidence and public opinion, both supporters and opponents of hunting are expected to campaign hard over the coming weeks.